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S&P 500 tops 4000 for the first time
01-Apr-21 16:15 ET
Dow +171.66 at 33153.21, Nasdaq +233.23 at 13480.13, S&P +46.98 at 4019.87

https://www.briefing.com/stock-market-update

[BRIEFING.COM] The S&P 500 (+1.2%) set intraday and closing record highs on Thursday, topping the 4000 level for the first time, in a relatively broad-based advance. The Nasdaq Composite (+1.8%) and Russell 2000 (+1.5%) outperformed the benchmark index with solid gains, while the Dow Jones Industrial Average (+0.5%) rose modestly.

There was a confluence of positive developments today. To name a few, the ISM Manufacturing Index for March jumped to 64.7% (Briefing.com consensus 61.2%) from 60.8% in February for its tenth straight expansionary reading, first-of-the-month inflows helped drive equities higher and Treasury yields lower, and the mega-caps provided influential leadership.

The mega-cap leadership was represented in the outperformances of the S&P 500 information technology (+2.1%) and communication services (+2.1%) sectors, although the energy sector (+2.7%) advance the most. The defensive-oriented health care (-0.2%), consumer staples (-0.2%), and utilities (-0.02%) sectors closed lower.

The Philadelphia Semiconductor Index (+3.7%) was another pocket of strength after Micron (MU 92.41, +4.20, +4.8%) beat EPS estimates and issued upbeat Q3 guidance and Taiwan Semi (TSM 124.80, +6.52, +5.5%) announced plans to invest $100 billion over three years to expand production capacity.

Energy stocks drew additional support from higher oil prices following an OPEC+ policy meeting. The group agreed to cautiously increase output from May through July with Saudi Arabia easing on its extra 1 million barrel/day cut. WTI crude futures settled higher by 3.8%, or $2.22, to $61.41/bbl.

It was interesting to see buyers return to the Treasury market, and the industrials sector (+0.4%) lag, despite the better-than-expected manufacturing data and President Biden unveiling a $2.3 trillion infrastructure spending plan yesterday.

As noted, first-of-the-month inflows presumably had an influence on Treasury prices, but there might have also been a cautious mindset in front of a three-day weekend that will include the March employment report tomorrow.

The 10-yr yield decreased seven basis points to 1.68%. The 2-yr yield decreased one basis point to 0.15%. The U.S. Dollar Index decreased 0.4% to 92.90. The CBOE Volatility Index (17.33, -2.07, -10.7%) dropped below 18.00.

Reviewing Thursday's economic data:

Initial jobless claims for the week ending March 27 increased by 61,000 to 719,000 (Briefing.com consensus 679,000) from last week's revised count of 658,000 (from 684,000). Continuing claims for the week ending March 20 decreased by 46,000 to 3.794 mln from last week's revised level of 3.840 mln (from 3.870 mln).
The key takeaway from the report is that while claims have been trending in the right direction for months, the overall downtrend continues hitting speed bumps like the unexpected increase that was captured in today's report.
The ISM Manufacturing Index for March jumped to 64.7% (Briefing.com consensus 61.2%) from 60.8% in February, reaching a level not seen since late 1983. The dividing line between expansion and contraction is 50.0%. March marked the tenth consecutive month the ISM Manufacturing Index has been above 50.0%.
The key takeaway from the report is that the Index reached its highest level in more than 37 years in the March reading, thanks to a growing backlog, rising prices, and low customer inventories.
Total construction spending decreased by 0.8% m/m in February (Briefing.com consensus -0.9%) after increasing a downwardly revised 1.2% (from 1.7%) in January. Total private construction spending fell 0.5% m/m and total public construction spending decreased 1.7%.
The key takeaway from the report is that construction spending showed a smaller than expected decrease in February despite severe winter weather in many regions of the country.
The IHS Markit Manufacturing PMI increased to 59.1 in March from 59.0 in February.

Looking ahead, the Employment Situation Report will be released on Friday (market will be closed for Good Friday), followed by the ISM Non-Manufacturing Index for March and Factory Orders for February on Monday.

Russell 2000 +14.1% YTD
Dow Jones Industrial Average +8.3% YTD
S&P 500 +7.0% YTD
Nasdaq Composite +4.6% YTD

WTI crude futures settle higher after OPEC+ meeting
01-Apr-21 15:30 ET
Dow +116.32 at 33097.87, Nasdaq +196.04 at 13442.94, S&P +36.41 at 4009.30

[BRIEFING.COM] The S&P 500 is up 0.9%, and the Russell 2000 is up 1.2%.

One last look at the S&P 500 sectors shows energy (+2.4%), information technology (+1.8%), and communication services (+1.7%) leading the advance with gains over 1.5%, while the utilities (-0.5%), health care (-0.3%), and consumer staples (-0.01%) sectors are trading lower.

WTI crude futures settled higher by 3.8%, or $2.22, to $61.41/bbl. OPEC+ agreed to cautiously increase output from May through July with Saudi Arabia easing on its extra 1 million barrel/day cut.